Mobile payment and commerce platform Paytm has introduced Aadhaar-based eKYC (E-Know Your Customer) to make the customer verification process convenient, paperless, and real-time.
“We are building India's largest eKYC customer network to bring half a billion Indians to the mainstream economy. This move is in line with Paytm’s goal of bringing Indians into the fold of the mainstream economy. We have aggressive targets to become the largest Aadhar-based eKYC company in the country,” says Vijay Shekhar Sharma, Founder and CEO, Paytm.
Regulated entities like banks and wallet providers are required to carry out certain customer identification procedures while establishing account-based relationships and undertaking transactions. These procedures constitute the KYC (Know Your Customer) process of customer verification and help identity theft, financial fraud, money laundering, and terrorist financing.
In the platform’s Aadhaar-based eKYC, a customer’s identity is verified instantly on the basis of biometric fingerprint or iris scans. When a customer requests to upgrade their Paytm account, they can either visit the closest Paytm centre or request a visit from a Paytm agent at their preferred address. Upon arrival, Paytm’s agent carries out a quick and easy eKYC process using a mobile-based biometric scanner. The customer’s consent is also registered using Aadhaar-based eSign, ensuring that the entire process is completely paperless. The process is also extremely secure since biometric details are used to verify identity, thereby reducing the possibility of fake/forged accounts.
Paytm has constituted a rich network of partners, agents, kiosks, and technological solutions to offer its consumers unmatched flexibility and convenience. With over a billion Aadhaar cards already issued, the platform believes that eKYC is key to realising their goal of bringing 500 million Indians to the mainstream economy.
About this development, Nandan Nilekani, Infosys Co-founder and former Chairman of UIDAI says, “Paytm is making a huge commitment to Aadhaar eKYC and the India Stack. The presenceless, paperless, and cashless era is coming soon to the smartphone in your hand.”
Amidst this, BankBazaar has also launched a multi-brand, paperless e-KYC platform for instant loan approval. The company’s online platform eliminates the need for physical document submission. Currently available for personal and car loans, customers can now choose instant approval products with one business day approval from different lenders.
In 2014, Payment solution provider Oxigen launched eKYC services to help unbanked masses.
Such launches shed light on how technology platforms are developing and are also pioneering others to become adaptable and globally scalable.